According to persons familiar with the proceedings, the Adani Group is about to finalize a firm agreement to refinance $3.5 billion in loans obtained for last year's acquisition of ACC Ltd and Ambuja Cement. At least 18 foreign banks have agreed to join a consortium led by Barclays, Deutsche Bank, and Standard Chartered, among others, to refinance loans used to support India's largest M&A in the building materials industry.

According to a source familiar with the situation, the financing arrangement was anticipated to be signed late Thursday night. The Adani family, the promoters, will prepay approximately $300 million as part of the new terms. This will also be the largest refinancing transaction in Asia Pacific this fiscal year.

According to people familiar with the fine, the exercise is estimated to save the Adanis roughly a quarter-billion dollars over a three-year period. On March 28, ET reported that the Adani Group was looking to renegotiate the conditions of ACC and Ambuja Cements acquisition finance.

Disbursements are expected to begin next week.

The Adani Group has begun talks with lenders to extend the tenor of loans from the current 18-month period, which was set to expire in February next year, to a lengthier period, ET reported at the time. To be sure, the group has repaid about $2 billion in Ambuja and ACC loans, including $1 billion in promoter advances obtained through a loan against shares (LAS) arrangement from three foreign banks.

The refinancing is being led by three Japanese banks, MUFG, Mizuho, and SMBC, and comprises a consortium of 18 lenders. DBS, First Abu Dhabi Bank, Standard Chartered Bank, Barclays, Deutsche Bank, ING, BNP Paribas, and Qatar's QNB are among the other Asian and European banks involved in the transaction.

Greater Loan Stakes

According to the persons indicated above, the majority of these lenders were part of the initial financing round, but seven institutions, led by MUFG, Standard Chartered Bank, Deutsche Bank, and Barclays, are increasing their exposures by a total of $750 million.